Waste Management Maintains Dividend - Analyst Blog

By
A A A

Waste Management, Inc. ( WM ) recently declared a second quarter 2013 dividend of 36.5 cents per share or $1.46 on an annualized basis, representing a 2.8% year-over-year increase. The dividend is payable on Jun 21 to shareholders of record as of Jun 7.

Based on the closing price of $41.21 on May 10, 2013, the dividend affirms a yield of 3.5%. A steady dividend payout is part of the long-term strategy of Waste Management to provide attractive risk-adjusted returns to its stockholders. In addition, decent dividend increases at periodic intervals have been one of the company's most attractive features.

Waste Management had earlier raised the quarterly dividend payout from 35.5 cents to 36.5 cents per share or from $1.42 to $1.46 on an annualized basis in Mar 2013. Prior to that, Waste Management raised its quarterly dividend in Mar 2012 from 34 cents to 35.5 cents and in Mar 2011 from 31.5 cents to 34 cents per share.

In the first quarter of 2013, the company returned $170 million to shareholders in the form of dividends. Moving forward, Waste Management plans to return significant cash to its shareholders through steady dividends in the future quarters as well.

Headquartered in Houston, Texas, Waste Management is the largest provider of comprehensive waste management services in North America. The company provides collection, transfer, recycling and resource recovery, as well as disposal services to nearly 20 million residential, commercial, industrial and municipal customers. It is also a leading developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the U.S.

Currently, Waste Management has five operating groups including Eastern, Midwest, Southern, Western, and the Wheelabrator. The Wheelabrator group includes the company's waste-to-energy facilities and independent power production plants. The company also has a joint venture with Linde Group, which includes plant that converts landfill gas into liquefied natural gas for use as fuel in the company's trucks.

Waste Management currently has a Zacks Rank #4 (Sell). Other stocks that look promising and are worth considering now are Clean Harbors, Inc. ( CLH ), Fidelity National Information Services, Inc. ( FIS ), and Green Dot Corporation ( GDOT ), each carrying a Zacks Rank #2 (Buy).



CLEAN HARBORS (CLH): Free Stock Analysis Report

FIDELITY NAT IN (FIS): Free Stock Analysis Report

GREEN DOT CP-A (GDOT): Free Stock Analysis Report

WASTE MGMT-NEW (WM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CLH , FIS , GDOT , WM

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

100%
100%
50%
83%

Most Active by Volume

64,789,752
  • $117.60 ▼ 0.86%
53,107,118
  • $10.39 ▼ 1.05%
42,600,857
  • $17.10 ▼ 0.47%
36,917,582
  • $11.02 ▼ 0.36%
34,902,121
  • $40.75 ▼ 0.10%
31,489,742
  • $15.68 ▲ 0.06%
31,037,743
  • $75.63 ▲ 2.19%
29,605,187
  • $10.11 ▼ 0.69%
As of 11/25/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com